SL SS — 498 V Semester B.Com. Examination, November/December 2018 (2016-17 and Onwards) (CBCS) (F+R) COMMERCE Costing Methods Time : 3 Hours Max. Marks : 70 Instruction : Answers should be written completely either in English or in Kannada. dian- a 1. cdngjeeidie amb enx-siéyfert engon, algatnocitg acta wotrid, (5x2=10) ©) BG Sor aeiprerobeed, accident) ? ©) mobrahip egratayaen, ) ‘Tox Roainesc row) sb) ‘Asha? Roatneed rooxy' sari emda Sea. 3) ‘ematng, eng? aceidesd 9 eo) Gedro ale acre ? tna) ‘wvaeudgy cotided 2 90) Gadtoxenrid exc earsisy sen, Qyen- 0 comand ahach adler egos, aSataccita, edd worried. (8x6=18) 2. siiprrodmrd ong agearivmy sotgian Aaos, 3. ‘emaing, dx! coe ‘emsing, cng! arid epraiay bea, tend arbScdood oman mys 3 soa) 5 aaa: abert stortedb20 2 SER 1000 connisii®, w2 adahiert ce.100, mand ax) : 10% | ads woes: 950 obenestnsd. 4. wor bri aosorn 60 &.d0e, eosdaths ade artery tog, meg wari LARS. so uag ee jdcd mabar 60 slodnetdcs, spain Modnedad rate 80%. 30 tom) ORY ve ALe) (trips) Sainedye emal JemAclg emir gpeor madgry rarbges toe Lowss JmMATO 20% smOcdnN UEEE, cine wy ode Abobo, SkyocbsNy, nocd erste’, wtay, eelmedvetsorne dey eto, Baineds ES pehoeso‘ TIGA SoweACw2, pmo.SS - 498 2 (0 WE 5. toch evsnpim Aoriocbd shav mabi\oibah agoiebsarl, wocbaheo mig'X’ abay comings ‘Y’ preONOE, aNd woes ders Od: mabfynso : da. 12,000 gx: do. 6,000 aorensteg,: da. 2,800 tb, 2. 20,800 desman shoo ses: detoried x . da. an. amabaris 6,000 3,000 gab 2,800 2,000 shee, 1,200 1,000 2a, 10,000 6,000 anova we 32,000 16,000 anmmisd veod women sory 25% 20% SONY wdodos soedF Soaatay evsea ade RoaPe ry noes desea Dywnesdeo Babs womb webs ZouwOn. A Saieo eked oder: da. 2,400 ; a8 oscd mgls aed : de. 100 ; spare side Rona ates, sleodeonil : 6% p.a. ; eusppie ated sitodactsy: da. 200. a) Babar? dD oatneosaly tadew suQrar oddaa, ov ForobofBon9. b) stair ae evenhron eta crosarinn Bosra dorteon0. dyert- 4 oinajennice shaw ajgried eugoa, ala sj¥x atameny wcerieb, (Bx14=42) 7. a) $8808 antosV03 ton 8 toxic awoDts Welotoaty gorsobotenD. eumodachia mabjried : de. 40,000 MB/s ted 1 dle, 25,000 Bee stegrteo re. 5,000 MRD BoOodd, 60% Cab, won shegegm,A aoey susngime Sug, 12.5% eaten seg 288 OA, Sams tone 15% Ox. cor3 sido),{Agu 3 SS -498 b) BYAS RoBwr Ae cay sey Be ost dab, cay) src Raduaddond BowoBoud0. ThErob 3d: @a. 10,00,000 Demrncs roy akg: da. 4,50,000 atid eto: Ge. 4,50,000 (Gecoad dex, 90%) Aecdoxeons tex: 3s. 50,000 radea ata: 10%. 8. ‘ot cosa abecd and aig obrie monet mc aiecidesd adohenried, sso He wot smodd mints 31-12-2017 dorks sedodose, daeriéo ate, od | zou Il zo Il (Ga) (Ba) (ea) (a2) sed msdn, 7,542 2,600 1,980 2,962 aed ad 9,000 2,000 3,000 4,000 seman coed 23, 9,000 Sedo Bows, 1000 csrwdernvay, womd oheneri de. 3 dod aeweone. wempe aoe J wslay Sec BaD Banescio? worsewAnd, sesoweys Br] G6 ARs wotmennd. xos made weds manga, said weg (hanet) — (wade) as 7 1 950 5% 840 10% 4 tL 750 15% 5 Bhob wos sndriesy marke emaing, de aoe emaing, my andrea goinow, 9. ‘e8 daret dards unr maberay wom wed dws Ss: denmosd. YF /road BPE, om. 9;00,000 Roov/ Se women mee 10 aiaterieo 20Gs, Jo aba heats and a3 wiz'a 2onb dirh an. 150 Thay sos) abajabtow aig Sortert ae. 5,000 woes 800 dorert de. 5,000 Ais ALhaw kod Sorert Ga. 2,500 dab airy de. 48,000 mori dori airy ae. 24,000 mang, Sede Sede Tey Bare Ge. 48,000SS - 498 4 {ANON eRdoiD 50 seachowo’ Gacads snus, Sots) mDNRdES. Beerssan ger mabgro mreelé arog aria mamta mages 20% dab ing mm Add Arbged. Sortert stonro 25 Oar ang, eadaisy/ tga" WIRES aoch erolos, senate, BorsokoRCNIO. i) De war sdacaocuo’s nobradram ay mone il) mmedéod sired Be, 50 ened Nemo, Ge ust mre we Yats dots, BoTotoBONDO. 10. mpoiser datadat de. 75,00,000 ringriccdah, 80% arity tox atmededoaTs dowd, tats walode sedi maida, dee ido siege Sedortodss : awn 2014 (c.) 2015 (¢.) 2016 (c.) marries 9,00,000 11,00,000 6,30,000 BRO 8,50,000 11,50,000 9,50,000 mrmeié 30,000 1,15,000, = wea mart 5,000 10,000 30,000 o80 seers 15,000 20,000 15,000 Bactoad ten 18,75,000 75% SO nan rogrfob deowe, prsrriececs Besorana ton 1,00,000 Togit sooSried Bz MS7i aeOos spSrivay ZoaRoAo. 11. ss 88hs asiocbrigod wa gon xo. 111 caleisteh torbtototso abe anon ridabe, 25% ened Decdated A Fonts eidoddah goudwACwO. mosbnyre aes, : da. 3,000 aed dad: Den X ~ 80 Bad notin Be ows de. 10 de Y — 60 Bad notsrivd BS novi da. 6 yon Z — 40 Bad rotines x8 rots ce. 5 shard aymrinen enatarieadl siocel ef Sdordosc3: tucdenrbd seeosingriv: Dyer X — 1000 sod rotineri de. 5,000. up Y — 3000 sod rovirieri de. 6,000 Dyort Z — 1000 wed notirieri ca. 2,000 SomenD AG Heewosieg,: 5,000 main, dua rovinert ce. 10,000.‘0000 s SS - 498 English Version SECTION —-A 14. Answer any five of the following sub-questions. Each sub-question carries two marks. (5x2=10) a) What is job costing ? b) Give the meaning of operating costing. ¢) Distinguish between maximum batch quantity and economic batch quantity. d) What is meant by abnormal gain ? ) What is meant by retention money ? ) What do you mean by by-products ? g) What is meant by work uncertified ? SECTION -B Answer any three questions from this Section. Each question carries 6 marks. (3x6=18) . Briefly explain the different methods of costing. . Briefly explain the meaning and treatment of abnormal loss and abnormal gain in process costing. Elaborate with the help of the details given, Input units — 1000 units @ Rs. 100 per unit, normal loss ~ 10% ; output - 950 units. . A transport company runs 4 buses between two cities which are 60 kms apart. The seating capacity of each bus is 60 passengers. The actual capacity carries is 80%. Each bus makes 4 round trips per day. On the onward journey, the buses run to full capacity and on return trip run 20% empty. Calculate the kilometers and total passenger kilometers for a month assuming that no bus is off the road due to repairs and maintenance. . In the processing a raw material, one main product X and a by-product Y are produced. The joint expenses of manufacturing are : Materials: Rs. 12,000 Labour : Rs. 6,000 ‘Overheads: Rs. 2,800 Total Rs. 20,800SS - 498 6 CANE Subsequent expenses are as follows : Particulars x * Materials 6,000 3,000 Labour 2,800 2,000 Overheads 1,200 1,000 Total 10,000 6,000 Sales value 32,000 16,000 Estimated profit on sales 25% 20% Show the apportionment of joint costs of manufacture using reverse cost method. 6. Annual demand for the component — Rs. 2,400 ; set-up cost per batch — Rs. 100 ; carrying cost per unit of production p.a. - 6% p.a. Manufacturing cost per unit Rs. 200 . a) Calculate the economic batch quantity for a company using batch costing with the given information b) Also find out the number of batches to be produced to meet the annual requirements. SECTION-—C Answer any three of the following questions. Each question carries 14 marks. (3x14=42) 7. a) Obtain the selling price of a job from the following particulars Materials used Rs. 40,000 Productive wages Rs. 25,000 Direct expenses Rs. 5,000 Provide 60% of productive wages for Works-on-cost and 12.5% of works cost for Office-on-cost. Profit is to be realized @ 15% on the selling price. b) How much of profit, if any would you allow to be transferred to profit and loss account in the following case ? Contract value Rs. 10,00,000 Cost of the contract till date Rs. 4,50,000 Cash received Rs. 4,50,000 (90% in work certified) Uncertified work Rs. 50,000 Retention money is 10 percent.(OO ers SS - 498 8. Product Bis obtained after it passes through three distinct processes. The following information is obtained from the accounts for the week ending 31-12-2017. Particulars Total Process! Process! Process Ill (Rs) (Rs) (Rs.) (Rs.) Direct materials 7,542 2,600 1,980 2,962 Direct wages 9,000 2,000 3,000 4,000 Production overhead 9,000 1000 units at Rs. 3 per unit were introduced to Process |. Production overhead is recovered on 100% of direct wages. The following additional data are obtained Process Output during the Normal Lossto Scrap value/ week (units) input unit (Rs.) \ 950 5% 2 u 840 10% 4 mM 750 15% 5 Prepare Process Accounts and Abnormal Gain or Loss Accounts. 9. Shiva Road Lines supplied the following details in respect of a truck of 5 ton capacity : Cost of the truck Rs. 9,00,000 Estimated life 10 years Diesel, oil, grease Rs. 150 per trip each way Repairs and maintenance Rs. 5,000 per month Driver's wages Rs. 5,000 per month Cleaner's wages Rs. 2,500 per month Insurance Rs. 48,000 per annum Road Tax Rs. 24,000 per annum General supervision charges Rs. 48,000 per annum The truck carries goods to and from the city covering a distance of 50. km each way. While going to the city, freight is available to the extent of full capacity and while returning only 20% of the capacity. Assuming the truck runs on an average 25 days in a month, work out i) Operating cost per ton-km. ii) Rate per ton per trip that should be charged to earn a profit ‘of 50% on freight.SS - 498 e (0010 8 10. Royal Constructions undertook a contract for Rs. 75,00,000 on an agreement that 80% of the value of the work certified should be paid immediately. The amounts expended were : Particulars 2014 (Rs.) 2015 (Rs.) 2016 (Rs.) Materials 9,00,000 11,00,000 6,30,000 Wages 8,50,000 14,50,000 9,50,000 Carriage 30,000 1,15,000 - Cartage 5,000 10,000 30,000 Sundry expenses 1,000 20,000 15,000 Work certified _18,75,000 75% of 30" June contract price whole contract was completed Work uncertified es 1,00,000 Show Contract Accounts and Contractee’s Accounts. 11. From the following details, you are required to calculate the cost of Job No. 111 and find out the price to give a profit of 25% on selling price. Materials cost at Rs. 3,000 Direct wages : a) Dept. X - 80 labour hours @ Rs. 10/hour 6) Dept. Y — 60 labour hours @ Rs. 6/hour >) Dept. Z~ 40 labour hours @ Res. S/hour Overhead expenses for three departments were estimated as follows : Variable Overheads : Dept. X- Rs. 5,000 for 1000 labour hours Dept. Y — Rs. 6,000 for 3000 labour hours Dept. Z— Rs. 2,000 for 1000 labour hours Fixed overheads are estimated at Rs. 10,000 for 5000 normal working hours.